Singapore Per Diem: How Does it Work & What Are the Rates?

Per diem, derived from Latin and meaning “by the day” refers to the daily allowances you have as an employee to cover business travel expenses.

These fixed allowances, which don’t count as part of an employee’s income, ensure you don’t have to worry about racking up personal expenses while on company time. In this blog post, you’ll learn about per diem rates in Singapore, the types of expenses typically covered, and how you can claim them.

Key takeaways:

• Your per diem rate will typically cover expenses such as meals, local transport, and incidentals but not everything
• It’s important to understand cross-border differences, as leaving the country may impact your per diem conditions

How Much is the Per Diem in Singapore?

As of 2025,¹ S$150 per day is the acceptable Singapore per diem rate. This covers business travel within Singapore. For trips into Singapore sanctioned by overseas-based employers, the acceptable Singapore per diem in 2025 is S$160 daily.

The per diem rates in Singapore are useful for covering travel expenses for employees. It makes it easier to file paperwork for both employee and employer, and they are tax deductible for businesses.

Government Guidelines

The Inland Revenue Authority of Singapore (IRAS), Singapore’s Government agency which handles tax collection, puts out a report each year in December which lays out acceptable per diem rates and comes into effect the following January.

Employers should consult these reports before setting per diem rates for employees as it can help ensure compliance with tax rules and prevent further tax filing obligations.

The acceptable rates for per diem in Singapore laid out by the IRAS usually reflect the cost-of-living conditions in Singapore at the time.

If the amount paid per diem doesn’t exceed the acceptable rate, then that amount of money is considered non taxable. If the per diem paid is above the acceptable rate for that year, it’s then deemed to be taxable and must be reported in Form IR8A.

The rates listed solely refer to what a company can pay per diem to ensure their employees stay within their tax obligations, which means there aren’t limits on how much employers can pay.

Industry Standards

On top of IRAS guidance, there can also be private-sector rules to consider for per diem rates.

However, it’s generally the case that S$150 per day is the standard for domestic trips, and for any overseas trips, employers will often check the IRAS table so their allowances comply with tax rules.

What Expenses Does Per Diem Cover in Singapore?

In Singapore, your per diem rate will typically cover the following on any business trip:

• Meals and food
• Accommodation
• Any local transportation such as taxis
• Incidental expenses which might include laundry fees, tips, or small service fees

If you’re self-employed and working as a contractor with another company, they might provide a per diem for work travel, but typically these will be restricted to the cost of meals.

Some expenses that aren’t usually covered by per diem rates include:

• Airfare
• Airport transfers
• Client-related expenses or entertainment

For those expenses that aren’t covered within the per diem rate, there may be a separate reimbursement policy.

Per diem rates can be covered in various ways depending on your employer. For example, you might be given a company credit card which you can use to pay all of your business expenses which means you don’t have to first cover the expenses from your personal funds.

How Do I Claim Per Diem in Singapore?

To claim per diem in Singapore an employee, you aren’t required to give the exact expenses that are covered as part of the rate.

However, for those expenses that fall outside of the remit of the per diem rate, you may have to present receipts for these purchases to receive reimbursement from your employer.

By sticking to the acceptable per diem rates, employers can avoid additional paperwork and stay within tax compliance regulations.

Employers have access to digital tools that can ensure compliance with acceptable per diem rates by automatically calculating allowances according to trip details.

It’s also important for employers to set clear corporate travel policies so everyone within the company is clear on what per diem rates are, what is reimbursable and what isn’t, and what the method for reimbursement will be.

In many ways, Singapore’s per diem system mirrors that of many other countries around the world. Most countries, the United States included, lay out per diem rates, and enforce a tax penalty for exceeding those rates.

In some countries, the expenses covered may differ. For example, in some countries, free meals will reduce the per diem entitlement.

In the United States, there are regional per diem tables that lay out acceptable rates according to the State you work in.

The Easy Way to Manage Expenses

Paying for travel fees, whether they can be reimbursed through per diem rates or not, is much easier when you use Wise Business.

Whether you’re travelling on company business as an employee and need a safe and seamless way to pay your way wherever you are, or you’re an employer paying per diem rates and looking to skip hidden fees, a smart option is to use Wise Business.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

Open a Wise Business account online

Sources used :

1. IRAS
   Sources checked on 15-August-2025.